Indianapolis estate planning lawyers are always going to emphasize the fact that every case is different and it takes experience and expertise to craft a plan that is ideal in light of your unique circumstances.

Tax considerations are always going to be of tantamount importance because the federal estate tax and the gift tax with which it is unified carry quite a wallop.  At the present time the rate of the gift/estate tax is 35%, and this is no small nibble.

But at the end of this year the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 is scheduled to expire and at that time the rate of the tax is going up to 55%.

With the above in mind you have to do what is necessary to transfer assets intelligently to mitigate your tax exposure.  Facebook founders Mark Zuckerberg and Dustin Moskovitz apparently did just that according to a recent Forbes piece.

They utilized something called the zeroed out GRAT strategy.  A GRAT is a grantor retained annuity trust, and the way that it works is that you as the grantor receive annuity payments out of the trust. You do however add a beneficiary who would assume ownership of any remainder that existed after the trust term expires.

The act of funding the trust is considered to be a gift by the IRS and as such it is taxable.  Estimated interest is accounted for utilizing the Section 7520 rate.

You zero out the GRAT by taking annuity payments equal to the entirety of the taxable value of the trust, retaining all of the interest.

But if the securities that you used to fund the trust appreciate beyond the IRS estimate, there will be a remainder, and it will pass to the beneficiary free of taxation.  In the case of Facebook shares prior to an IPO this is the penultimate example of a successful zeroed out GRAT strategy.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

It is said that ignorance of a law does not excuse you of a crime if you violate it.  Similarly, not being aware of a tax does not excuse you from having to pay it.  This is something to keep in mind when you are giving gifts of significant value to your loved ones.

You may think that there should be no charge imposed by the government simply because you decided to transfer assets to your loved ones.  Because of this you may not be aware of the existence of the gift tax, but it is very real indeed.

The gift tax is in place to prevent people from giving gifts to their loved ones while they are still alive in an effort to avoid the estate tax.  In fact, the gift tax and the estate tax are said to be “unified” by the IRS.  There is a $5.12 million exemption, but this covers both your estate and any gifts that you may give while you are still alive utilizing this lifetime exclusion.

So if you were to give gifts totaling the unified exclusion amount throughout your life all of your estate would be subject to the estate tax.

It should be noted that this $5.12 million figure is only in place through the end of this year so you may not be as safe as you think.  In 2013 the exclusion is scheduled to be reduced to just $1 million.

As you can see, not only are the tax laws somewhat complicated, but they are always changing so your estate plan could be up-to-date one year and out of date the next.  This is one of the reasons why it is so important to develop an ongoing relationship with a licensed and experienced Indianapolis estate planning lawyer and be prepared to make revisions when necessary.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

If you want to develop a comprehensive plan for aging that covers any and all contingencies, you must consider the possibility of certain medical scenarios presenting themselves.

There are those who become unable to communicate at some point in time, and due to the medical advances that have been made it is sometimes possible to keep people alive for long periods of time who are in a vegetative state with no hope of recovery.

Of course elders can fall into such a condition, but it sometimes happens to younger people as well and we all learned this through the highly publicized case of Terri Schiavo.

A living will is a document that is executed to record your wishes in a legally binding manner with regard to your medical preferences.  If Terri Schiavo would have executed a living Will the acrimony between her parents and her husband could have been avoided because her own wishes would have been known and honored.

You may also add additional information to your living Will.  One thing that you could cover would be whether or not you would be willing to donate organs or tissue after your passing.  Organ transplants are saving lives every day, and the need for more donors always exists.

The best way to make sure that you are comprehensively prepared for the future is to go forward with the benefit of professional advice.  If you would like to do just that, simply pick up the phone to arrange for a consultation with a good Indianapolis estate planning lawyer.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

There is no one-size-fits-all estate plan because every situation is unique.  Depending on the specifics of your wishes, the nature of your assets and the dynamic of your family there are a number of different ways to go about making preparations for the future.  Because of this expert guidance is extraordinarily important.

It would be possible to make a mistake that your loved ones would be left behind to pay for if you do not proceed in the optimal manner.  There are some advanced estate planning techniques that are appropriate under certain circumstances and the typical layperson would simply be unaware of them.

And frankly, not all attorneys are particularly well-versed in the intricacies of estate planning and elder law.  This is why it is wise to work with someone who has dedicated his or her professional career to these particular aspects of the law.

For example, let’s say that you have someone in the family with special needs.  This person may be relying on government assistance to one degree or another.  Arranging for this individual to inherit something from you without losing his or her benefits involves specialized knowledge.

In addition, the complexities of the tax code come into play as well.  Depending on the form that your resources are in a number of different approaches can be appropriate, and it is also important to understand the fact that the estate tax parameters are changing all the time.

Dedicated Indianapolis estate planning lawyers are going to be apprised of these changes every step of the way.  Developing an ongoing relationship with such an attorney is the wise course of action so that your estate plan always remains up-to-date for the well-being of those that you love.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

If you have someone on your inheritance list who is not a good money manager you may want to take specific steps to make sure that he or she does not burn through the inheritance that you leave too quickly.  One of the ways that this can be done is through the creation of a spendthrift trust.

With these trusts you name a trustee who will manage the financial resources that you place into the vehicle. This trustee has total control, so the important decision-making is left out of the hands of the beneficiary.

Many people will utilize a professional entity to serve as the trustee.  This will often be the trust department of a bank or a trust company.  In this manner the funds will be professionally invested and administered.

Another good thing about spendthrift trusts is that they protect assets.  An individual who is not a good handler of money may fall into a significant amount of debt.  You may be concerned about an inheritance that you leave to an heir being absorbed by his or her creditors.  You can avoid this by providing for this individual with resources placed into a spendthrift trust.

The best way to proceed when you are planning your estate is going to vary depending on the specific circumstances.  If you are interested in discussing the optimal course of action with an expert, simply take a moment to pick up the phone to arrange for a consultation with a licensed Indianapolis estate planning lawyer.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

The world of entertainment suffered a significant blow recently when the legendary singer Whitney Houston passed away at the young age of 48.

There have been precious few entertainers who have enjoyed the type of success that Houston was able to generate with her immense vocal talents.  She holds the industry record with seven consecutive number one singles and this is a mark that may be hard to beat.  Whitney Houston won no less than six Grammy awards, and she took home a pair of Emmy awards as well.

We can learn a lot about the do’s and don’ts of estate planning when we hear about the way that celebrities planned their estates.  There are many high profile cases where the rich and famous did not take the necessary steps to make their wishes known.  On the other hand, some people, such as the British singer Amy Winehouse, did in fact pass away with ironclad estate plans in place.

The details of the Whitney Houston estate have not been made public as of yet but it is believed that her 18-year-old daughter Bobbi will be inheriting her resources.  They are indeed considerable, and the value of her estate will increase dramatically as interest in her work is rekindled as people remember her greatness.

People do pass away before their time as this case will attest.  If you do not have an estate plan in place, even if you have not yet celebrated your 50th birthday, take action right now to arrange for a consultation with a licensed Indianapolis estate planning lawyer.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

You can look at estate planning in one of two different ways.  There are some people who go through life doing whatever they please without any particular objectives with regard to passing along a legacy.  They just execute a last will that splits up whatever they happen to have left over among their loved ones and let the chips fall as they may.

There is no absolute right or wrong regarding how you approach your estate and you can conduct your life in any way that you choose to of course.  However, in addition to the types of individuals described above there are others who have specific things that they would like to be able to do for their loved ones.

This could include providing significant inheritances to their children to make their lives easier, and many people will have specific intentions in mind with regard to taking care of their grandchildren.  Others would like to include a charitable giving component when they’re planning their estates in an effort to give something back to worthy causes.

If you do have specific objectives you have to consider these when you are acting in the present.  It can take some intelligent long-term planning to accumulate the resources that you need to satisfy all of your legacy goals.  And in addition to this, you must stick to the plan with discipline over an extended period of time.

The sooner you get started the better.  The intelligent first step is to take action to sit down and discuss your future with a licensed and experienced Indianapolis estate planning lawyer.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Everyone is aware of the fact that bad lifestyle choices can catch up with you from a health perspective.  Fortunately a lot of people recognize this early on and do everything possible to take care of themselves.

Others are motivated to turn their lifestyles around once they start to see some symptoms develop.  And of course there are those who persist in their bad habits, and they generally pay the price.

While we’re on the subject of prices, the cost of medical care is extremely high, and long-term care expenses are exorbitant as well.  When you are planning for the future it is important to consider these potential expenses and do what it takes to be able to address them.  But at the same time, it is a very good idea to connect your potential future medical expenses to your current lifestyle decisions.

The majority of deaths occur due to chronic illnesses such as stroke, cancer, diabetes, and heart disease.  To a large extent these chronic diseases are preventable through eating a proper diet, maintaining a healthy weight, getting regular exercise, and refraining from smoking.

When you make bad choices you are not only impacting your quality of life from a health perspective, but you are also inviting huge medical bills later in your life.  This is something to keep in mind, and it may provide you with the motivation that you need to take care of yourself in an intelligent manner.

To be able to enjoy your retirement years as a happy and healthy senior citizen you need to plan ahead.  The best way to formulate a comprehensive strategy for aging is to sit down and discuss every aspect of your future with a licensed, experienced Indianapolis retirement planning lawyer.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Probate can be simply and briefly defined as the legal process of estate administration.  When you use a last will to direct the transfer of your assets to your heirs your estate must be probated before anyone receives their inheritances.  This process serves a purpose, but at the same time it can prevent a smooth, timely, cost-effective, and efficient distribution of resources to your loved ones.

Exactly how long probate will take depends on the jurisdiction in question and the complexity of the case.  If anyone wanted to contest the will they would present their arguments before the probate court.  This would certainly slow things down considerably, but even in ordinary cases probate typically can take several months to a year in most jurisdictions.

In addition to the time lag that is presented by probate, there are also significant expenses that go along with the process.  The court itself imposes a charge, and the executor is entitled to payment for his or her time and effort.

The executor is going to have to bring in various professionals to assist in most cases, and there is a price tag attached to this.  In all these probate expenses can add up to consume a significant portion of your legacy.

The above are some of the reasons why probate is often avoided.  If you would like to explore your options with regard to probate avoidance, don’t hesitate to pick up the phone to arrange for a consultation with a good Indianapolis estate planning lawyer.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

More and more people are conducting business online these days, and this is something to keep firmly in mind when you are planning your estate.  If you have bank accounts that you manage online and Internet-based brokerage accounts you are going to have to let your estate administrator know about them and provide the necessary access where appropriate.

There is also the matter of your creditors.  These days a lot of creditors encourage their customers to sign up for paperless billing options.  So you may have creditor accounts that have no paper trail at all.  This is another thing to take into consideration when you are passing along relevant information to the individual or entity that will be handling your final affairs.

On top of the financial aspects you may also have social network accounts such as a Facebook account.  This is another matter to address.  Facebook allows the family of a deceased account holder to request that this individual’s Facebook account be memorialized.

This entails disallowing future access, deleting personal information, and removing status updates. In addition, the deceased individual is no longer recommended as a friend and cannot be found in searches.  However, existing friends can still post on the wall of the deceased Facebook account holder.

There certainly are a lot of details to attend to when you are making final preparations.  The best way to make sure that you are leaving nothing undone is to work alongside a licensed and experienced Indianapolis estate planning attorney when you are crafting your legacy.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.